Egypt’s government is set to increase Takaful and Karama pension payments by 15%, and plans to add 500,000 families to the program in the next fiscal year, a senior finance ministry official told Al Manassa.
The increase would push the average monthly pension from 900 Egyptian pounds to roughly 1,030, following a 25% boost enacted by presidential decree. The new hike is expected to be announced alongside the 2025/2026 budget and its accompanying social protection package.
Current Karama pensions range between 705 and 884 pounds, depending on the category, while Takaful payments cap at 648 pounds, according to state budget data. In July, Social Solidarity Minister Maya Morsy said the program serves 7.7 million families nationwide.
“The pension will increase by 15% to relieve pressure on households battered by rising prices,” the official said. “Food and commodity costs are climbing, and inflation is stretching vulnerable families to the brink.”
In September, annual inflation stood at 13.1% in July and 10.3%.
The proposed pension expansion is tied to Egypt’s ongoing economic reform plan under the International Monetary Fund.
The IMF delayed the disbursement of its fifth loan tranche, merging it with the sixth review, to give Egypt more time to meet reform commitments under a December 2022 deal.
The government is expected to finalize both reviews next month, unlocking $2.5 billion in IMF funds by December.
Meanwhile, the Social Solidarity Ministry will cover university tuition for 100,000 public university students in the upcoming academic year. It will also launch a new initiative to support female-headed households and widows, offering direct cash transfers and help starting small businesses, explained the finance ministry source.
These plans come amid a fresh wave of price hikes. The Petroleum Ministry raised fuel prices this month—10% to 13% increases for gasoline and diesel, and a staggering 43% for auto gas—which triggered surging public transit fares and higher costs for unsubsidized bread. Analysts warn these hikes will soon ripple into broader service sectors.
In April, President Abdel Fattah El-Sisi signed Law No. 12 of 2025, formally anchoring Takaful and Karama as Egypt’s primary social safety net.
Takaful targets families ineligible for social insurance due to poverty, abandonment, incarceration, or conscription, while Karama supports the elderly, chronically ill, people with disabilities, and other marginalized groups.
Together, the programs define 13 beneficiary categories under conditional and unconditional aid schemes.
